Private Equity 3 Days

Last updated: May 22, 2026, 11:30 PM ET

AI, Fintech & Venture Funding

The artificial intelligence boom continued to reshape dealmaking this week, with founders and investors stretching conventional metrics to justify sky-high valuations. Some AI startups are inflating ARR figures when discussing progress publicly, a practice their venture backers fully understand. Sam Altman took the opposite tack, offering to invest in every Y Combinator startup with equity tokens, while Anthropic acquired Fractional AI in a deal backed by Goldman Sachs, General Atlantic, Apollo Global Management and GIC. Across the Atlantic, Chinese robotics companies raised $5.6 billion through mid-May across 176 deals, matching the prior year's total, as IPO momentum builds. Meanwhile, the $5.2 billion digital banking startup Mercury raised $200 million in a Series D, up 49% from its previous round valuation, while payments startup Primer secured a $100 million Series C led by Balderton. Even founders outside the AI wave found capital: Lucra raised $20 million from ARK Invest for an eSports gamification platform without slapping "AI" on its pitch deck.

Healthcare Consolidation & Portfolio Activity

Private equity continued to concentrate healthcare assets, with London-based GHO Capital and Singapore-headquartered CBC Group agreeing to merge into a $21 billion healthcare investment manager, making it the world's largest dedicated healthcare PE firm. The combined entity will be led by co-CEOs Mike Mortimer and Fu Wei. Separately, Charterhouse Capital, Iron Path and Revelar Capital are actively targeting pain management platforms, while Carlyle leveraged rising demand for identity security to grow iC Consult's revenue 20% annually before putting it up for sale to Bridgepoint. Bregal Sagemount and Ardian backed health tech firm Ennov with a focus on AI-driven product scaling, and Yellow Wood-backed Scholl's Wellness Company acquired athletic performance brand Vktry. On the divestment side, Kingswood Capital sold marine services firm Lind Marine to Tallvine Partners, and Wynnchurch disposed of metal fabricator Ironform.

Secondaries Market Evolution

The secondaries sector showed fresh signs of institutional appetite, with Q1 2026 seeing 27 continuation vehicles close, nine of them outside traditional private equity. Pantheon Capital's $1 billion CFO-led fund created access for insurance investors locked out of direct PE exposure, while Aqualis set its debut secondaries offering on smaller transactions it sees as underserved. Step Stone lowered fees during investment periods then increased them afterward, a move that drew pushback during an earnings call as the firm defended its pricing mechanics. DBJ Asset Management signaled openness to both LP- and GP-led credit secondaries, and Investec called secondaries "an excellent way to speed up platform growth" after launching its inaugural European senior debt fund through a secondaries process backed by Carlyle Alp Invest. Longer hold periods and lower distribution rates are pushing managers to differentiate through alpha delivery rather than fee compression.

Defense, Aerospace & Institutional Capital Shifts

Defense spending attracted fresh institutional capital as Earlybird raised a €500 million fund with French investor AVP and Capitol Meridian appointed former U.S. Army Secretary Ryan McCarthy as operating partner to advise on defense market trends. One Bow River backed aerospace company PteroDynamics to accelerate VTOL unmanned aircraft development, while Convective Capital launched an $85 million fund focused on disaster resilience. On the infrastructure side, CPP Investments sold a $2.9 billion private equity portfolio to Blackstone and Ardian, and Switzerland's Publica pension fund is preparing a $1.1 billion commitment to direct lending. Arctos Partners acquired a 10% stake in the Cleveland Browns at a valuation exceeding $9 billion, and the firm was also approved as an LP of the team. Meanwhile, GHO and CBC's co-founders will serve as co-CEOs of the combined healthcare platform.

Consumer, Retail & Platform Building

The consumer sector saw a flurry of activity, with PE-backed Authentic Brands Group acquiring the denim brand Lee and smart ring maker Oura filing for a New York IPO. The Pinault family office Artémis sold its majority stake in Giambattista Valli back to the designer, while Trinity Hunt Partners formed Elevation Landscape Group with an initial investment in Colorado-based Landscape Endeavors. Oakley Capital recruited former Red Bull F1 team principal Christian Horner to scout premium sports deals, and Gryphon-backed Southern Home Services acquired Blazer Heating, Air & Plumbing. In biotech, Imperagen raised £5 million for enzyme engineering using quantum physics and AI, and fragrance tech company Patina secured $2 million from Betaworks and True Ventures to challenge an industry unchanged in nearly 50 years. Nautic-backed Integrated Home Care Services acquired Dina Care, and TSCP-backed Pest Co snapped up University Termite & Pest Control.